The GuildOS Insider Chapter 4: GameFi 2022 Recap
As 2022 is coming to a close, we will be taking a look back at some GameFi moments throughout the year, the state of it today and what the…
As 2022 is coming to a close, we will be taking a look back at some GameFi moments throughout the year, the state of it today and what the future may hold.
Outlining Recent Market Trends
Coming off the recent bullish highs at the end of 2021, Q1 2022 had the whole market trending downward amidst bitter macro conditions and rising inflation before spiralling down in February and consolidating in April.
Still being seen as relatively stable earlier in the year, GameFi’s total user numbers were not affected by this turbulence, with overall numbers estimated at around 1.2 million.
Credit: Footprint Analytics
Q3 bore witness to the first snowfall of this crypto winter, as Bitcoin, Ether and major cryptocurrencies fell and iconic GameFi tokens lost over 90% of its capital in the last six months.
In regards to Axie Infinity (a game currently integrated with GuildOS), the period between Q1 and Q2 of 2022 saw a huge decline of approximately 2.9 million active users. Q3 saw active user numbers rally to 3 million, picking up after the release of Axie Infinity: Origins and Axie: Classic World Championship with a prize pool of $500k being held at AxieCon in Barcelona.
Credit: Footprint Analytics
Keeping Pace with Current Affairs
As GameFi is part of the crypto ecosystem, Q4 (to date) saw FTX stealing the headlines. This fallout from the collapse of FTX has led to calls for greater regulatory measures in the crypto market.
Credit: BBC
This shows a need for Proof of Reserves (PoR) as an independent audit conducted by a third party seeking to ensure that a custodian holds the assets it claims to own on behalf of its clients. Equally important next steps in the industry include Proof of Liabilities and some sort of Proof of Incorporation or Consolidation across related companies.
This general consensus of needing better regulation has led to lowering interests within GameFi and play-to-earn systems. Moreover, as the GameFi landscape continues to evolve, 81% of GameFi investors are pivoting from the traditional mindset and prioritising the fun factor over profit-making as they seek positive in-game experiences.
What to Expect Moving Forward
Naavik and BITKRAFT Ventures estimated that the blockchain gaming market will advance at a Compound Annual Growth Rate (CAGR) of 100%, from $1.5 billion in 2021 to $50 billion in 2025.
Nonetheless, it’s important to remain mindful of how regulations around cryptocurrency evolve and how regulators decide to design the regulations around virtual digital assets since these affect the course of innovation within the GameFi space.
Tag us on Twitter @guildosio to let us know your thoughts and comments!
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Winter is here, onwards!
Team GuildOS.
References:
[1] Footprint Analytics. Footprint Analytics × CoinMarketCap: 2022 GameFi Industry Report. https://www.footprint.network/@DamonSalvatore/GameFi-in-Bull-Bear-Market?date=2022-01-01~2022-04-30
[2]: Playtoearn.online. 3 out of 4 Investors Are Joining Crypto Because of GameFi. https://www.playtoearn.online/2022/08/19/investors-joining-crypto-gamefi/#:~:text=Chainplay%20found%20out%20that%2058,schemes%2C%20and%20pyramid%20schemes%20projects.
[3]: Cointelegraph. GameFi investors are now prioritizing fun factor over money: Survey. https://cointelegraph.com/news/gamefi-investors-are-now-prioritizing-fun-factor-over-money-survey
[4]: Cointelegraph. Proof-of-reserves: Can reserve audits avoid another FTX-like moment? https://cointelegraph.com/news/proof-of-reserves-can-reserve-audits-avoid-another-ftx-like-moment
[5]: CoinMarketCap.com. CoinMarketCap and Footprint Analytics: 2022 GameFi Industry Report. https://coinmarketcap.com/alexandria/article/coinmarketcap-and-footprint-analytics-2022-gamefi-industry-report